Purchase price $90k - might be able to get it cheaper, since I'd be paying cash. I currently have no rentals and low (part time) income/large mortgage on primary (we cash out refi'd in the spring to put more money in the market) so I can't get a mortgage up front.
P&I: $0 unless I finance after the fact once I establish the rental income stream.
T&I: $100/mo in taxes (per county records), $60/mo insurance (estimate)
House is from 1900, but has has mechanical and electrical all updated in the last 15 years, a metal roof in good shape, and cement board siding also in good shape. It's pretty indestructible on the exterior. It does need exterior paint and some minor touching up inside but at most $5k for everything. So I'd estimate maintenance after that at $100/mo.
Rent would be in the ballpark of $1200 ($400-500 per bedroom, place is legal for up to 3 occupants and has 3 bedrooms/parking spots).
The town is also one in which my family might want to live at some point, though this particular house would have to be just a temporary solution for that (too small for our large family in the long term, only has 1 bathroom, in a mostly rental neighborhood).
In the winter, landlords traditionally pay for snow removal for the parking areas, so that will add maybe $50/mo amortized over the year.
Seems like a slam dunk, with $1200-1500 in rent against $310 of overhead and another $100/mo of vacancy.
Nice ~$900-1000 a month of cash flow on a $95k investment. Sounds pretty good...
But wait, you say, what about management? This place is 1500 miles away from me, and thus far, I haven't found a local property manager. A buddy lives around the corner and could keep a vague eye on it/hand keys to new tenants, but I can only remotely manage to a limited extent. And it's a place that would generally be rented to college kids (I've done this before) which means more hassle/work. I've remotely managed a house before by just incentivizing tenants to help show/recruit new tenants and finding a few trusted handymen, and it worked, but it was a little nerve wracking.
I'm leaning toward yes if I can find a property manager, but otherwise no, because I don't want to involve money/stress in my relationship with my local friend, and I don't want or need the stress for this amount of money.
Thoughts?
-W